This brochure provides a general overview of the range of national insurance schemes and social security benefits in the Netherlands including the amounts as at 1 July 2012. It is up to the implementing body to assess whether you are entitled to a benefit. Contribution overview, page 2 General Old Age Pensions Act (AOW), page 4 Surviving Dependants Act (ANW), page 6 General Child Benefit Act (AKW), page 8 Child-related budget, page 9 Care allowance for handicapped children living at home (TOG), page 10 Invalidity Insurance (Young Disabled Persons) Act (Wajong), page 11 Invalidity Insurance Act (WAO), page 13 Invalidity Insurance (Self-Employed Persons) Act (WAZ), page 15 Work and Income (Capacity for Work) Act (WIA), page 16 Maternity Benefit Scheme for the Self-Employed (ZEZ scheme), page 17 Sickness Benefits Act (ZW), page 18 Unemployment Insurance Act (WW), page 20 Supplementary Benefits Act (TW), page 22 Work and Social Assistance Act (WWB), page 24 Older and Partially Disabled Unemployed Workers Income Scheme Act (IOAW), page 28 Older and Partially Disabled Former Self-Employed Persons Income Scheme Act (IOAZ), page 29 Healthcare Insurance Act (ZVW) and Exceptional Medical Expenses Act (AWBZ), page 31 Benefit outside the Netherlands, page 32 Further information, page 33 Introduction National insurance is compulsory for all persons living in the Netherlands. All persons working here and therefore paying income tax are also insured. Persons working in salaried employment have compulsory insurance under the employee insurance schemes. Anyone without compulsory insurance can take out optional insurance subject to certain conditions for particular risks. More information about this is available from the implementation bodies concerned. Apart from national insurance schemes there are also social security benefits which supplement an inadequate (family) income up to the level of the social minimum for particular living conditions. The Supplementary Benefits Act, Wajong, IOAW, IOAZ and WWB referred to in this brochure are all examples of such social security benefits. Persons living here illegally are not covered by the national insurance schemes and social security benefits. Living conditions/partner concept In all social security laws two unmarried persons living together are considered equivalent to a married couple. The same applies to two brothers or sisters living together and the cohabitation of a grandparent with a grandchild. Anyone living with a parent or child is regarded as single (except in certain social assistance situations). Married persons who live permanently separated from one another are also regarded as single, unless of course they are living with someone else. A single parent is someone who has a child under the age of 18 in the household for whom he/she receives child benefit. Ministry of Social Affairs and Employment 1
Contribution overview Contributions as at 1 July 2012 National insurance schemes (contribution paid to the Tax Department) contribution % AOW ANW AWBZ employer - - - employee 17.90 1.10 12.15 The contributions are levied (in a single amount together with the income tax deducted at source) over a taxable income from work and home ownership. There is a general tax credit which applies to everyone. Depending on the situation a range of tax credits is possible. Contributions as at 1 July 2012 Contribution % WAO/WIAbasic contribution Employee insurance schemes (contribution paid to the Tax Department) WGA differentiated standard contribution WW (Awf) 1) WW (Sfn) KO Compulsory childcare contribution Employer 5.05 0.55 4.55 2.27 2) 0.50 7.10 Employee - - - - - - ZVW 1) Marginal contribution percentage to General Unemployment Fund (AWf contribution) above the tax-exempt amount of 17,229 per year. 2) Average sector contribution. The maximum income assessable for employee insurance schemes is 50,064 per year ( 192.55 per day). Invalidity Insurance Act (WAO) / Work and Income (Capacity for Work) Act (WIA) The contribution is comprised of two parts: o o the basic contribution which is the same for all employers the differentiated WGA contribution which is levied on an individual basis. The standard contribution set by the Employee Insurance Agency (UWV) for 2012 is 0.55%. Employers who have chosen to bear the WGA risk themselves only pay the WAO/WIA basic contribution. These employers have chosen to bear the financial risk of partial unfitness for work on the part of their employees entirely by themselves or have it covered by a private insurer. The WAO/WIA contribution is paid over at most 50,064 per year. Unemployment Insurance Act (WW) The WW contribution is comprised of several parts: o one part for the General Unemployment Fund (Awf); o one part for the Sector Fund and; o a surcharge on the sector premiums as a contribution to the costs of childcare; The WW contribution is paid over 50,064 per year at most. For government employers a different method is used to levy contributions. Ministry of Social Affairs and Employment 2
Healthcare Insurance Act (ZVW) Besides the ZVW nominal contribution, every person subject to compulsory insurance must make an income-related contribution. This income-related ZVW contribution (2012: 7.10%) is refunded by the employer. The employee must subsequently pay income tax / national insurance contributions over that refund however. The maximum contribution-income limit for the Healthcare Insurance Act is 50,064 per year. Ministry of Social Affairs and Employment 3
General Old Age Pensions Act (AOW) The General Old Age Pensions Act (AOW) is a basic pension provision for people who have reached the age of entitlement to an AOW pension. The AOW also includes a partner allowance for AOW beneficiaries whose partner has not yet reached the age of entitlement for an AOW pension and has little or no income. Compulsory insurance Insurance for the AOW is compulsory for everyone living in the Netherlands who is between the age of 15 and the age of entitlement to An AOW pension. No distinction is drawn between men and women or between people who are working and people who are not. You are also insured if you do not reside in the Netherlands but are working here and therefore subject to income tax deducted at source. When does AOW commence? AOW commences on the day a person reaches the age of entitlement to an AOW pension. The AOW pension is paid at the end of each month. The right to AOW pension ends on the first day subsequent to decease. The amount of the AOW pension depends on the home situation and how many years a person has been insured for the AOW. How much is the AOW? Gross monthly amounts as at 1 July 2012 AOW Holiday allowance single 1,051.98 59.16 single parent with child up to 18 years of age 1,334.83 76.06 married / living together ( both partners have reached the age 722.74 42.25 of entitlement to AOW) married / living together without partner allowance (partner has 722.74 42.25 not yet reached the age of entitlement to AOW) married / living together with full partner allowance (partner has not yet reached the age of entitlement to AOW) See: NB 1,445.48 84.50 If the AOW pension started before 1 February 1994 and the partner has not yet reached the Age of entitlement to AOW then the following amounts apply: married / living together (partner has not yet reached the age of entitlement to AOW) 1,051.98 59.16 NB! The amounts stated here are full AOW pension benefits. Anyone who did not come to live in the Netherlands until later in life will probably receive a lower benefit. For each year 2% less AOW. The amounts stated are gross monthly amounts. The Social Insurance Bank (SVB) withholds taxes and contributions from the pension, including the income-related contribution for health care. The holiday allowance is accumulated monthly and paid out to you in May. Ministry of Social Affairs and Employment 4
Purchasing power allowance Elderly persons paying tax in the Netherlands may receive a purchasing power allowance: the MKOB. This purchasing power allowance for older taxable persons continues to be 33.65 gross per month in 2012. In principle only elderly persons residing in the Netherlands receive the MKOB allowance automatically. AOW beneficiaries living outside the Netherlands may however receive the MKOB allowance if at least 90% of their world income is subject to tax in the Netherlands. The world income is the total income from both inside and outside the Netherlands. When is partner allowance received? If your partner has not yet reached the age of entitlement to AOW then you are entitled to a partner allowance. This allowance is only paid if the youngest partner has little or no income. The income referred to here is only taken into consideration if it is income from work (a job) or income which is related to work (a social security or early retirement benefit (VUT)). The partner allowance may be reduced by a maximum of 10% if the combined household income is 2,547,78 or more per month. The allowance stops as soon as the partner reaches the age of entitlement to AOW and starts receiving an own AOW pension. From 2015 onwards new AOW beneficiaries will no longer be able to claim partner allowance. Partner who lived or worked outside the Netherlands If the partner has lived or worked outside the Netherlands it usually means that he or she is not insured for the AOW. For each year the partner was not insured, 2% is deducted from the partner allowance. Applying for AOW A letter is sent automatically to the home of every person registered with a municipal authority in the Netherlands six months before the age of entitlement to AOW, which describes how to apply for AOW at the Social Insurance Bank (SVB). Ministry of Social Affairs and Employment 5
Surviving Dependants Act (ANW) If a spouse, partner or parent dies this will have financial consequences for the surviving partner and/or children. In accordance with the Surviving Dependants Act (ANW) surviving dependants may be eligible for a surviving dependants benefit. Orphans are also eligible for a benefit. Who is eligible? Surviving dependants are eligible for an ANW benefit if they fulfil the following conditions: The surviving dependant has not yet reached the age of entitlement to AOW; The partner was insured for the ANW on the day of decease. Every resident in the Netherlands is automatically insured for the ANW on an ongoing basis. The surviving dependant was born before 1950, or takes care of one or more children under the age of 18, or is at least 45% unfit for work. Half-orphan s benefit If you are taking care of one or more children under the age of 18 in your household, you are entitled to a half-orphan s benefit. The number of children you are caring for does not affect the amount of the benefit. Orphan s benefit A child is entitled to orphan s benefit if both parents are deceased (normally up to the age of 16, up to the age of 18 in the case of invalidity, and up to the age of 21 if the child is studying). ANW and other income The amount of the ANW benefit depends on your income. Income related to (previous) work (such as a WAO, WIA or WW benefit) is deducted in full. Income from work (salary, profit, early retirement benefit, early pension or a benefit over and above the statutory minimum) is partially exempt: 50 percent of the minimum wage plus one third of what you earn above that amount. This means that for a gross income from work of 728.10 the surviving dependants benefit will still be paid in full. If the income is higher the surviving dependants benefit is lower, and if the income is higher than 2,400.74 gross per month, you receive no ANW benefit at all. The following incomes are not taken into account for the ANW: assets; income from assets (rental for a room for example); payments from insurance policies; payments from a private or joint surviving dependants pension; income from interest. Transition arrangement Surviving dependants who were entitled to AWW before 1 July 1996 (General Widows' and Orphans' Benefits Act), are subject to a transition arrangement. For more information about this you should contact the Social Insurance Bank (SVB). Ministry of Social Affairs and Employment 6
How much is the benefit? Gross monthly amounts as at 1 ANW Holiday allowance January 2012 surviving dependants benefit 1,115.09 71.21 half-orphan s benefit 254.24 20.33 orphan to 10 years 356.83 22.79 orphan from 10 to 16 years 535.24 34.18 orphan from 16 to 21 years 713.66 45.57 Allowance If you are eligible for a surviving dependants, orphan s or half-orphan s benefit, you will also receive and allowance in 2012 in addition to that benefit of 15.88 (gross per month). Applying for ANW When a person registered in the Netherlands dies the Social Insurance Bank (SVB) sends a letter to the spouse, registered partner or orphan (under 21 years of age) concerning the surviving dependants benefit. Even if the deceased did not live in the Netherlands or there was no question of marriage or registered partnership, you as a surviving dependant may still be entitled to a benefit. Contact the SVB for more information in this regard. When does the ANW benefit stop? The ANW benefit stops when you no longer fulfil the conditions. You no longer fulfil the conditions in the following cases: You receive a benefit based on the General Old Age Pensions Act (AOW). You remarry, enter into a registered partnership, or move into the same house with someone else. If you stop living together within six months, you may revert back to the surviving dependants benefit. If you are taking care of a person in need of help at home, or if you are in need of help yourself and live with someone for that reason, your ANW benefit is not terminated but is reduced to 50 percent of the minimum wage. You leave the Netherlands. Whether the benefit ends or not will depend on your place of residence. The youngest child turns 18 years of age or moves into a different household. You are no longer unfit for work. NB: The latter two reasons do not apply to surviving dependants born before 1 January 1950. Nor do they apply to surviving dependants born between 1 January 1950 and 1 July 1956 and married before 1 July 1996 if the spouse died before 1 July 1999. Their right to a benefit derives from a transition arrangement. Ministry of Social Affairs and Employment 7
General Child Benefit Act (AKW) The General Child Benefit Act (AKW) offers parents an allowance for the expenses of bringing up and taking care of children up to the age of 18. Who is eligible? Parents of children up to the age of 18 are entitled to child benefit. The amount of the benefit depends on the age of the child. For children born before 1 January 1995 the size of the family is also taken into account. Depending on whether the child is living at home or not, any income from work earned by the child and (in some cases) the amount of the maintenance contribution, a child may count as one or two child-benefit children. How much is the child benefit? Children born before 1 January 1995: For children 17 years of age in families Per quarter with: 1 child 273.78 2 children 314.44 3 children 327.99 4 children 354.81 5 children 370.89 6 children 381.62 7 children 389.28 8 children 403.05 9 children 413.77 10 children 422.34 Children born on or after 1 January 1995: For children aged: Per quarter 0 to 5 years 191.65 6 to 11 years 232.71 12 to 17 years 273.78 Applying for child benefit Parents receive the application form automatically at home. In the Netherlands the municipal authority passes the particulars of the parents and the baby on to the Social Insurance Bank (SVB) after they have been submitted. Persons not living in the Netherlands or who have just arrived in the Netherlands with the family must apply for an application form from the SVB themselves. Ministry of Social Affairs and Employment 8
Child-related budget The child-related budget is an allowance from the government for the expenses of families earning an income up to a certain level. Who is eligible? Parents of children up to 18 years of age may be eligible for the child-related budget. This depends on their income. The number of children younger than 18 is also taken into account. The more children, the higher the child-related budget may be. How much is the child-related budget? The child-related budget depends on your income. With a family income of up to 28,897 (in 2012) a family receives the maximum childrelated budget. As the family income exceeds 28,897 the child-related budget is gradually reduced. A family with Maximum per year: 1 child 1,017 2 children 1,478 3 children 1,661 4 children 1,767 5 children 1,873 For each subsequent child an extra 106 per year. Increase for children from 12 to 15 years (contribution to school expenses): 231 per year. Increase for children aged 16 and 17 years (contribution to school expenses): 296 per year. Applying for child-related budget Parents who fulfil the conditions do not have to make an application. The Tax Department looks at the (combined) income and other data from the SVB, about child benefit for example. Ministry of Social Affairs and Employment 9
Care allowance for handicapped children living at home (TOG) The Care allowance for handicapped children living at home (TOG) scheme provides extra financial support to parents who have a physically or mentally handicapped child living at home. Who is eligible? The TOG is intended for parents with severely handicapped children living at home who require a large amount of care from the parents. To be eligible for the TOG benefit you need an indication under the Exceptional Medical Expenses Act (AWBZ) of at least ten hours per week. How much is the benefit? As from 1 January 2012 the allowance is 215.80 per quarter. You pay no tax on this amount. Nor does the allowance affect the child benefit. Where can you apply for the benefit? You can send your TOG application with the AWBZ indication for your child to the Social Insurance Bank (SVB). The application form is available on the SVB website: www.svb.nl All TOG applications are dealt with by the Social Insurance Bank Roermond, Postbus 1244, 6040 KE Roermond, telephone (0475) 36 80 40. NB: AWBZ indications are issued by the Care Assessment Centre (CIZ) and the Youth Care Agency (BJZ). Ministry of Social Affairs and Employment 10
Invalidity Insurance (Young Disabled Persons) Act (Wajong) The Wajong offers support to young disabled persons and students who became disabled during their studies to find and keep a job with a regular employer. If they are unable to earn enough from this work then they will be eligible for income support. Who is eligible? The Wajong is intended for persons who contract a long-term illness or handicap at a young age. A person can apply for a Wajong benefit if he/she has a long-term illness or handicap on his/her 17 th birthday or has a long-term illness prior to his/her 30 th birthday and followed a course of at least 6 months in the previous year. The remaining conditions are: full recovery from the illness or handicap within 1 year is unlikely residing in the Netherlands due to the long-term illness or handicap, less than 75% of the minimum wage can be earned for at least 52 consecutive weeks. The benefit commences on reaching the age of eighteen at the earliest and ends on reaching the age of entitlement to AOW at the latest. How much is the benefit? The Wajong income support is a supplement to the salary earned by the young handicapped person. It is calculated on the basis of that salary. The total income is at least 75% of the minimum wage. Until the age of 27 the salary is partially offset against the income support. The total income will therefore always be higher the more a young handicapped person earns. From the age of 27 onwards the income from work is supplemented to 100% if the person works to capacity. Students and school pupils receive an income support of 25%. Young disabled persons who are wholly and permanently unfit for work receive an income support of 75%. If the young handicapped person is in need of regular care the benefit may be increased to a maximum 100% of the basis. This does not apply if the individual concerned is admitted to an institution and the cost thereof is paid by an insurer. Ministry of Social Affairs and Employment 11
Amounts as at 1 July 2012 Basis per day excl. holiday allowance From age 22 years 21 years 20 years 19 years 18 years 23 years 66.95 56.91 48.54 41.17 35.15 30.46 Holiday allowance Each month 8% of the Wajong benefit is put aside for the holiday allowance, which is paid out in May. Assessing incapacity for work In principle the UWV continues to assess the level of incapacity for work after the benefit has been granted. Allowance and surcharge Apart from the Wajong benefit every Wajong beneficiary under the age of 23 is also entitled to an allowance. This allowance is intended to compensate the negative effects on income of the Healthcare Insurance Act and the Care Allowance Act. As at 1 July 2012 the gross Wajong allowance per month is as follows: Age 23 and older 0 Age 22 1.79 Age 21 4.37 Age 20 8.87 Age 19 14.80 Age 18 15.43 If the Wajong benefit in combination with other family income is lower than the social minimum you may apply for an allowance on the grounds of the Supplementary Benefits Act. Where and when is it possible to apply for the benefit? This depends on the circumstances: If the young handicapped person has had an illness or handicap from the age of 17 years, or for even longer than that, the Wajong must be applied for at least 4 months before his/her 18 th birthday. The benefit commences on reaching the age of 18. If the young handicapped person acquired an illness or handicap while studying or following a course, and if he or she is under the age of 30, then the Wajong must be applied for no more than 8 months after the illness or handicap began. The benefit commences 1 year after the start of the illness or handicap. The Wajong should be applied for at the Employee Insurance Agency (UWV). Ministry of Social Affairs and Employment 12
Invalidity Insurance Act (WAO) The Invalidity Insurance Act (WAO) was replaced on 29 December 2005 by the WIA, the Work and Income (Capacity for Work) Act. If you became ill on or after 1 January 2004 and are still unable to work after a period of two years then you will be involved with the WIA. The WAO continues to exist for those already receiving the WAO benefit. They may be reassessed however according to new and stricter criteria, with possible consequences for their benefit. Who is eligible? Only those persons who became ill prior to 1 January 2004. How much is the WAO benefit? The WAO benefit has two phases: 1. The loss-of-income benefit, based on the daily wage (as at 1 July 2012 maximum 193.09 Euro gross). Every month 8% is reserved for the holiday allowance, which is paid out in May. The duration of the loss-of-income benefit depends on the person s age when the WAO benefit commences. Age Duration up to 32 years 0 years 33 to 37 years 0.5 years 38 to 42 years 1 years 43 to 47 years 1.5 years 48 to 52 years 2 years 53 to 57 years 3 years 58 years 6 years 59 years or older Until the age of entitlement to AOW 2. The follow-up benefit, based on the continuation daily pay. The follow-up benefit can in principle continue until the age of entitlement to AOW. The continuation daily pay is calculated as follows: for each year by which a person is older than the age of 15 on the day the WAO benefit commences, 2% of the difference between the previous wage (maximum 193.09 per day) and the minimum wage including 8% holiday allowance, is added to that minimum wage. If for example a person is 45 years old on the commencement date, in other words 30 years older than 15 years of age, we take (30x2%=) 60% of that difference. This amount plus the minimum wage is the continuation daily pay and forms the basis for the follow-up benefit. The amount of the loss-of-income benefit and the follow-up benefit depends not only on the (continuation) daily pay but also on the level of incapacity for work. The benefit amounts to a maximum of 75% of the wage based on the (maximum) daily pay. The level of incapacity for work is determined on the basis of what you can still earn by doing customary work. Customary work is the work a person can still perform given his state of health and abilities. The earnings from this are compared to the original wage. Ministry of Social Affairs and Employment 13
If you as a person incapacitated for work are in need of regular care, the benefit may be raised to a maximum 100% of the (continuation) daily pay. This does not apply if you have been admitted to an institution and the cost thereof is paid by an insurer. If the sum of your WAO benefit and the remaining family income is less than the social minimum, you can apply for an allowance based on the Supplementary Benefits Act. If the WAO beneficiary dies, the surviving dependants are entitled to a death benefit. For those who were already receiving WAO on 1 August 1993, different rules may apply. Ministry of Social Affairs and Employment 14
Invalidity Insurance (Self-Employed Persons) Act (WAZ) Only self-employed persons who became incapacitated for work prior to 1 August 2004 can still receive a WAZ benefit. If you become incapacitated for work now, you will have to provide for your own replacement income. A self-employed person who already had a WAZ benefit on 1 August 2004 keeps that benefit for as long as the following conditions continue to be fulfilled: o the self-employed person is more than 25% unfit for work; o the self-employed person has not yet reached the age of entitlement to AOW; o the income on the first day of illness was (partially) earned working as a selfemployed person. Since 1 august 2004 self-employed persons may decide for themselves whether or not, and how, they want to cover the income risks. You can provide for a replacement income by: putting money aside; taking out normal private invalidity insurance; taking out 'individual invalidity insurance under collective conditions'. This can be done through a range of sectoral and professional organisations. Organisations for self-employed persons such as the Platform for Self-Employed Entrepreneurs (PZO), the Christian Trade Union (CNV) for the Self-Employed, and the Union for Self- Employed Entrepreneurs affiliated with the Dutch Trade Union Association (FNV) offer their members this option; taking out voluntary Sickness Benefits Act insurance and/or WIA insurance at the UWV. This insurance applies to self-employed entrepreneurs who start out with a position of employment or a benefit. Alternative insurance Anyone who is unable to take out private invalidity insurance for medical reasons is eligible for alternative safety net insurance with a private insurer if he applies for private insurance within three months after starting the business. WAZ beneficiaries declared on reassessment to be wholly unfit for work who are unable to take out additional private invalidity insurance may also use the alternative insurance if they apply for private insurance within three months after the WAZ benefit has ended. Such alternative insurance is not subject to medical acceptance or an age limit. Ministry of Social Affairs and Employment 15
Work and Income (Capacity for Work) Act (WIA) The WIA ensures that employees are entitled to an invalidity benefit in the event of full and permanent incapacity for work. Those who are still able to work up to a certain level receive a supplement to their wage. Who is eligible? For employees who became ill on or after 1 January 2004 a waiting period of 104 weeks applies. After that they are entitled to a benefit based on the WIA, provided they are at least 35% unfit for work. How much is the benefit? If you are wholly and permanently incapacitated for work you receive an invalidity benefit. This means you have to be at least 80% unfit for work and have no or very little chance of recovery. In that case you are eligible for a benefit based on the Fully Disabled Persons Income Scheme (IVA) of 75% of the daily wage (maximum daily pay as at 1 July 2012 193.09 Euro gross). If you are at least 35% unfit for work you are entitled to a benefit based on the Return to Work (Partially Disabled Persons) Scheme (WGA). o o o You receive a pay-related WGA benefit for anything from 3 to 38 months. For the first two months your benefit is 75 percent of the daily pay and 70 percent after that. If you are working you will receive for the first two months, on top of the new wage, a benefit of 75 percent of the loss of earnings in comparison to the daily pay. Your total income increases the more you work; At the end of the pay-related benefit the amount you are earning is assessed. If this is at least 50% of the residual earning capacity, the WGA supplements the wage up to 70% of the difference between the daily pay and the residual earning capacity or new wage; If you have no work at the end of the pay-related benefit or earn less than 50% of the residual earning capacity, you receive a benefit based on a percentage of the minimum wage. Each month 8% of the WIA benefit is reserved for the holiday allowance, which is paid out in May. If the sum of the WIA benefit and other family income is less than the social minimum, you may apply for an allowance based on the Supplementary Benefits Act. Applying for WIA benefit The IVA and WGA are implemented by the Employee Insurance Agency (UWV). Ministry of Social Affairs and Employment 16
Maternity Benefit Scheme for the Self-Employed (ZEZ scheme) Female self-employed entrepreneurs are entitled to a maternity allowance of at least sixteen weeks. Who is eligible? The scheme applies to female self-employed entrepreneurs, the spouse who works with them, female professionals with no employment contract and female directors and major shareholders. How much is the benefit? The amount of the benefit depends on the profit you made or the number of hours you worked as a self-employed person in the year previous to the one in which the benefit is paid out. If in the previous year you worked at least 1225 hours as a self-employed person, the UWV assumes you earned at least the minimum wage. This means you are entitled to a benefit equal to 100% of the statutory minimum wage. If in the previous year you worked less than 1225 hours as a self-employed person, the amount of the benefit depends on the profit you made. The benefit never exceeds the minimum wage. How long does the benefit last? In total at least sixteen weeks. The benefit consists of a pregnancy benefit and a childbirth benefit. Your pregnancy benefit starts six weeks before the anticipated date of delivery and continues until the moment of giving birth, even if the delivery is later than originally anticipated. You may also postpone the pregnancy benefit until four weeks before the date you are expected to give birth at the latest. In that case you are entitled to receive the childbirth benefit for longer. Your childbirth benefit commences on the day of delivery and lasts for ten weeks. If you shortened the pregnancy benefit by a few days, the childbirth benefit will be extended by the same number of days. Where can you apply for the benefit? You may apply for the maternity benefit at the UWV. You must do so in good time at least two weeks before the date on which you want the pregnancy benefit to start. You must also provide a written statement from a doctor or obstetrician with the application, stating the anticipated date of birth of your child. Ministry of Social Affairs and Employment 17
Sickness Benefits Act (ZW) The Sickness Benefits Act applies only to people who do not (no longer) have an employer, people working for an employment agency for example. You may also receive sickness benefit if you are sick due to pregnancy and childbirth. The sickness benefit is at least seventy percent of the daily wage (here a maximum applies). If you start working as a self-employed entrepreneur then in certain situations it is possible to insure yourself voluntarily. Who is eligible? If you are sick and do not (no longer) have an employer, you may receive sickness benefit. The Sickness Benefits Act provides for this. You are insured for the Sickness Benefits Act if you fulfil the following conditions. You are: an employee in salaried employment (or were in the past); not yet entitled to AOW; a contractor of work but not working in a business of your own; a trainee receiving trainee pay; a home worker, musician or artist. For this group certain additional conditions apply. The Employee Insurance Agency (UWV) can tell you more about this. If you are insured you may be entitled to a sickness benefit in the following situations: You are a temporary employee (and do not have a permanent contract with the employment agency); You are an on-call worker (depending on the type of on-call contract); Your temporary employment contract expires during your illness; You are a home worker; You receive unemployment benefit on the basis of the Unemployment Insurance Act (WW) and have been sick for more than 13 weeks; You become sick a result of pregnancy and giving birth. If you are in paid employment you are entitled a benefit during your maternity leave based on the Work and Care Act (Wazo). But if you become ill due to your pregnancy before or after delivering the child you receive a sickness benefit; You donate an organ and are temporarily unable to work as a result; You are partially incapacitated for work and become sick within five years of being employed. In that case your employer does not have to continue paying your salary and you receive a sickness benefit (no-risk policy). Not for self-employed entrepreneurs If you are an entrepreneur or a director and major shareholder you can only appeal to the Sickness Benefits Act if you have optional insurance for that purpose. How much is the sick pay? Your sickness benefit is at least 70 percent of your daily wage. The daily wage is the average daily pay you earned in the year before you became ill. NB: This is subject to a maximum of 193.09 gross as at 1 July 2012. The benefit continues for no more than 104 weeks (two years). After 104 weeks of illness the sick employee may be entitled to a pay supplement or a full disability benefit (see the information on the WIA). In certain circumstances the sickness benefit may be supplemented by an allowance based on the Supplementary Benefits Act. Ministry of Social Affairs and Employment 18
The Dutch parliament is currently discussing an amendment to the Sickness Benefits Act, whereby the amount and duration of the benefit could come to depend on the number of years a person has worked as early as 2013. Applying for ZW benefit You apply for a sickness benefit at the Employee Insurance Agency (UWV). The UWV is also responsible for absence management and reintegration. Ministry of Social Affairs and Employment 19
Unemployment Insurance Act (WW) The WW insures employees against the financial consequences of unemployment. The loss of income may be temporarily cushioned by an Unemployment Insurance Act benefit (WW benefit). This benefit bridges the period between one job and another. Who is eligible? To be eligible for a WW benefit a person must at least: Not yet have reached the age of entitlement to AOW; Be insured for the WW; Lose at least five working hours per week (or at least half their working hours if they worked less than ten hours a week); Have no further right to pay for the lost working hours; Be available to start work; Fulfil the weeks requirement, which means they must have been in paid employment for at least 26 of the 36 weeks preceding the first day of unemployment; Not receive any sickness benefit, WAO benefit for full disability or IVA benefit; Not receive WGA benefit (unless he/she also worked while receiving the WGA benefit and has now lost that job); Register as a jobseeker at the UWV WERKbedrijf (the work placement branch of the Employee Insurance Agency). Nor may a person be voluntarily unemployed. A person is voluntarily unemployed if they resigned from their job or were dismissed for urgent cause. In that case they receive only a partial benefit or none at all. How much is the benefit? For the first two months 75% of the most recently earned salary is paid out (as at 1 July 2012 subject to a maximum of 193.09 gross per day) and 70% after that. How long does the benefit last? The duration of a WW benefit depends on the number of years a person worked before they became unemployed. The duration of the WW benefit varies from a minimum of 3 months to a maximum of 38 months. If only the weeks requirement is fulfilled, the maximum duration of the WW benefit is three months. According to the weeks requirement they must have been in full, paid employment for at least 26 of the 36 weeks preceding the first day of unemployment. If the years requirement is also fulfilled, the WW benefit is extended. Anyone who received a salary for 52 days or more in four of the five calendar years preceding the year in which they became unemployed fulfils the years requirement. This means the duration of the WW benefit depends on the employment history. The benefit continues for as many months as the length of their employment history in years (subject to a maximum of 38 months). Ministry of Social Affairs and Employment 20
The years from the calendar year in which a person turned the age of 18 up to and including 1997 are counted as employment history for everyone ( fictitious employment history ). From 1998 onwards it is the actual number of years worked that counts ( actual employment history ). From 2007 onwards the years in which a person did not work, but in which they provided informal care, also count as employment history. Each month 8% of the WW benefit is put aside for the holiday allowance, which is paid out in May. If the sum of the WW benefit and other family income is less than the social minimum, you may apply for an allowance based on the Supplementary Benefits Act at the UWV. Applying for WW benefit You can register as a jobseeker at www.werk.nl. After that you can apply (electronically) for a WW benefit. The UWV will subsequently get in touch with you. Not on the internet? In that case you should visit the UWV WERKbedrijf branch nearest to where you live. Ministry of Social Affairs and Employment 21
Supplementary Benefits Act (TW) The Supplementary Benefits Act supplements benefits up to the level of the social minimum if the total income of the beneficiary and possible partner is below that level. Who is eligible? You may be eligible for a supplement if you have a benefit based on the: Sickness Benefits Act (ZW) Unemployment Insurance Act (WW) Invalidity Insurance (Young Disabled Persons) Act (Wajong) Invalidity Insurance Act (WAO) Work and Income (Capacity for Work) Act (WIA) Military Personnel Invalidity Insurance Act (Wamil) Older unemployed persons income scheme (IOW) Work and Care Act. Supplementation of a benefit related to pregnancy, giving birth and adoption is possible. You are eligible for an allowance even if your employer pays you no more than seventy percent of your salary in the second year of illness. Income below the social minimum Your total income must not be too high. You may be entitled to the supplement if: You are married or cohabiting and your joint income is lower than the gross minimum wage; You are single with a child under eighteen years of age and your income is less than ninety percent of the gross minimum wage. No entitlement to a supplement You have no entitlement to a supplement if you: Are under the age of 21 and live at home; Are married to a partner born after 31 December 1971 and have no children under the age of twelve. You are single and your income is below seventy percent of the gross minimum wage. How much is the supplement? The supplement is such that the sum of the supplement and the benefit is a standard amount. The amount of the supplement is the difference between the standard amount and the income. Standard amounts as at 1 July 2012 gross per day (excluding holiday allowance) single person 23 years or older 50.51 single parent 62.91 married / living together 66.95 A lower standard amount applies for single persons under the age of 23. Income and supplement Anything the applicant and partner earn and virtually all benefits are counted as income. Assets such as an own house or savings are disregarded. In the assessment of the entitlement to a supplement, part of the income from employment (equal to 15% of the minimum wage at most) is disregarded for a maximum period of two years. Ministry of Social Affairs and Employment 22
The supplement never exceeds the difference between the daily wage or basis on which the benefit was calculated and the loss-of-income benefit. Briefly stated, this means the supplement never tops up your income beyond the old level of income from employment. Holiday allowance If you entitled to a supplement you are also entitled to a holiday allowance equal to 8% of that supplement. This holiday allowance is paid out annually in May. Where can you apply for the supplement? You apply for a supplement to your benefit at the Employee Insurance Agency (UWV). You should do so at the same time as you apply for the benefit or within six weeks thereafter. You should only submit your application for a supplement to your benefit to the UWV WERKbedrijf if it is based on the Unemployment Insurance Act (WW benefit). Ministry of Social Affairs and Employment 23
The Work and Social Assistance Act (WWB) The WWB provides a minimum income to anyone legally residing in the Netherlands who has insufficient means to cover the basic costs of living. The social assistance benefit bridges the period until someone finds a job again. You must however do all you can to get back to providing for your own living expenses and you are obliged to take on any generally accepted work. If you are unable to find work by yourself the Social Services, the UWV WERKbedrijf and/or a rehabilitation firm can assist you in looking for work or training. Assistance and assets If you are receiving for example maintenance, a benefit or income from work, the income will be topped up to the social assistance benefit level. Assets exceeding a certain amount ( 11,370 for families and single parents and 5,685 for single persons) are taken into account. If assets are tied up in a house, assistance is given in the form of a loan (revolving mortgage) which must be repaid. In that case a capital exemption of no more than 48,000 applies. Social assistance benefit levels The WWB has national standards for people from the ages of 18 to 21, from 21 to the age of entitlement to AOW, and for those who are already at or beyond the age of entitlement to AOW. The Act distinguishes between: o families; o single parents (looking after one or more children under 18 years of age); o single persons. A different standard amount applies to each of these groups. For families, married persons and persons living together between the age of 21 and the age of entitlement to AOW, it is 100% of the net minimum wage, for single parents between the age of 21 and the age of entitlement to AOW it is 70%, and for single persons between the age of 21 and the age of entitlement to AOW it is 50%. The basic principle of the standard for single parents and single persons is that they can share (living) costs with others. If this is not the case, or only partially the case, the municipal authority may grant them an allowance not exceeding 20% of the net minimum wage. Social assistance for young people Young people from the age of 18 to 27 have been subject to the WWB since 2012 and may be entitled to a social assistance benefit. The Investing in Young People Act (WIJ) was abolished on 1 January 2012. Are you a young person wanting to apply for a social assistance benefit in 2012? In that case you must first actively seek work for a period of four weeks (and training as well as from 1 July 2012). The search period starts on the day you report to the UWV WERKbedrijf. If at the end of the search period it is found that you made sufficient effort to find work or training, but were unable to find either, you will then be able to apply for a social assistance benefit. Ministry of Social Affairs and Employment 24
Additional Income Provision for the Elderly (AIO) You can apply for the AIO if you have reached the age of entitlement to AOW, reside legally in the Netherlands and do not have sufficient income or assets to provide for your living expenses. How much is the benefit? Social assistance Per month Holiday allowance Total benefit levels (net amounts as at 1 July 2012) 21 to age of 1 July 2012 entitlement to AOW married persons/persons 1,270.03 66.84 1,336.87 living together Single parent 889.02 46.79 935.81 Single person 635.02 33.42 668.44 Maximum allowance for single parents and single persons from 21 to 254.00 13.37 267.37 age of entitlement to AOW 18 to 21 years of age Single persons 219.43 11.55 230.98 Single parents 473.43 24.92 498.35 Two persons both younger than 21: - without children - with children Two persons, one younger than 21: - without children - with children Three or more persons of full age, two of them younger than 21 Residing in an institution Single person or single parent 438.86 692.86 854.45 1,108.45 23.10 36.47 44.97 58.34 461.96 729.33 899.42 1,166.79 1,073.88 56.52 1,130.40 281.53 14.82 296.35 Married persons 437.88 23.05 460.93 Annual invalidity supplement People between the age of 21 and the age of entitlement to AOW with a long-term low income not exceeding 110% of the social minimum, who have little or no assets and no prospect of any improvement in their income, may be eligible for an annual invalidity supplement. Municipal authorities determine the amount of the annual invalidity supplement as well as defining long-term and low income in this context. Ministry of Social Affairs and Employment 25
Expense allowance for voluntary work Persons entitled to social assistance who do voluntary work sometimes receive an allowance for the expenses involved. They may keep a limited amount of that allowance, without this affecting the amount of their benefit. If it is voluntary work which the municipal authority considers necessary for the reintegration of a person entitled to social assistance and you are 27 years of age or older, the maximum amount which may be freely received per month is 150. The maximum per year is 1,500. In all other cases the maximum amount of the expense allowance which may be released is less than this, namely 95 per month and 764 per year. Compensation Healthcare Insurance Act Everyone who has reached the age of 18 pays a nominal contribution to a healthcare insurer. For low incomes the government makes a contribution to the cost of health insurance in the form of a care allowance. A monthly amount is added to the benefit of persons in an institution, which can be used to pay the contribution for the new health insurance. For single persons and for each unmarried member of the family the care allowance is 49 per month and for married persons it is 93 per month. Bonus for reintegration A one-off bonus of up to 2,292 per calendar year is released, which the person entitled to social assistance receives in the context of engaging in work. Municipal authorities may give such a bonus to persons entitled to social assistance with a view to promoting positive behaviour and the transition from living on benefit to paid employment. Release of income If you have a paid job alongside your social assistance benefit and are at least 27 years of age then the municipal authority may release part of your income. In that case you may keep up to 25% of your income for six months. Here a monthly maximum of 192 applies. Are you a single parent at least 27 years of age with a part time job alongside your social assistance benefit? In that case, subsequent to the six month release described above, you may also be able to keep 12.5% of your income for a maximum consecutive period of 30 months. Here the maximum monthly amount released is 120.23. To be eligible for this however, your (youngest) child must be under the age of 12 years and you must have full responsibility for the care of that child. For both releases the work you do should also help to increase your chances of making the transition from dependence on social assistance benefit to paid employment. Special assistance If a person incurs necessary, special expenses which in the opinion of the municipal authority he is unable to pay himself, then he may appeal to the municipal authority for special assistance. These expenses may relate to such things as moving house, study, childcare or housing surcharges. Here your income and assets are taken into account. Municipal authorities determine the expenses for which special assistance is granted, and the conditions under which they are granted, on the basis of your individual circumstances. Where can you apply for the benefit? Ministry of Social Affairs and Employment 26
You can apply for a social assistance benefit at the UWV WERKbedrijf. For the AIO you should contact the SVB. Special assistance should be applied for at the Social Services or Social Affairs department of the municipality in which you live. Doing something in return From 2012 the municipal authority may require persons receiving a social assistance, IOAW or IOAZ benefit to do something in return. That something in return consists of unpaid activities which are useful to society. These may be for a few hours per day or week and continue for a period of several weeks or months. The activities in question must not involve work which should in fact be paid for. Ministry of Social Affairs and Employment 27